What are External Commercial Borrowings (ECBs)? Explain the various tracks and forms available under ECBs.

External Commercial Borrowings (ECBs) are commercial loans raised by eligible resident entities from recognised non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc. The parameters apply in totality and not on a standalone basis. Tracks of ECB The framework for raising loans through ECB comprises the following three tracks: Track I: Medium term foreign currency denominated ECB with minimum average maturity of 3/5 years. Track II: Long term foreign currency denominated ECB with minimum average maturity of 10 years. Track III: Indian Rupee (INR) denominated ECB with minimum average maturity of 3/5 years. Forms of ECB The ECB Framework enables permitted resident entities to borrow from recognized non-resident entities in the following forms: Loans including bank loans; Securitized instruments (e.g. floating rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference shares / debentures); Buyers' credit; Suppliers' credit; Foreign Currency Convertible Bonds (FCCBs); Financial Lease; and Foreign Currency Exchangeable Bonds (FCEBs) However, ECB framework is not applicable in respect of the investment in Non-convertible Debentures (NCDs) in India made by Registered Foreign Portfolio Investors (RFPIs).